FACTORS AFFECTING OUR BUSINESS EXTERNALLY.

FACTORS AFFECTING OUR BUSINESS

Just like in a plant, there are many factors that can affect the starting and the growth process of a business. When you are in the ocean in a sailboat you cannot control the direction of the wind, but you can adjust the sails to suit your direction. There are many factors that influence the business world and though some are uncontrollable, most can be manipulated into your advantage in starting a business that will have a great chance in succeeding. The choices you will make when starting your business will affect it when you start or later on along the way. You therefore need to pay attention to the following points to avoid any mistakes.

ORGANIZATIONAL DIRECTION:

The role of company leadership is an important internal business factor. Your leadership style and the styles of other company management impact organizational culture. The positive or negative nature, level of family-friendliness, effectiveness of communication and value of employees are cultural implications that result from leadership approaches. Companies often provide formal structure or direction with mission and vision statements. These are forward-looking statements that provide the business for company decisions and activities.

SOCIAL NETWORKS:

There is no doubt that the society is continually changing. The tastes and fashions are a great example of this change. One of the most significant differences is the growing popularity of social media. Social networking sites like Facebook have become very popular among the younger people. The young consumers have grown used to mobile phones and computers.

The younger generation prefers to use digital technology to shop online. Older people will perhaps stick to their traditional methods. The effect of changing society is an often discussed. You must also understand that these changing factors have a toll on businesses too. Changes in the social factors can impact a firm in many different ways.

POLITICAL  FACTORS:

The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. All firms must follow the law. Managers must find how upcoming legislations can affect their activities.

The political environment can impact business organizations in many ways. It could add a risk factor and lead to a major loss.  You should understand that the political factors have the power to change results. It can also affect government policies at local to federal level. Companies should be ready to deal with the local and international outcomes of politics.

Changes in the government policy make up the political factors. The change can be economic, legal or social. It could also be a mix of these factors.

LAWS:

State, local or federal changes in the laws can have a direct impact on your business if the service or product becomes highly regulated or outlawed. Cigarette manufacturers learned this lesson when public smoking was outlawed in many areas and smoking indoors has become practically nonexistent. Government regulations such as those that affect the environment or communication are beyond your control and could have a direct impact on your business.

 TRAFFIC:

The people who see your advertisement and promotional content are important. Actually, it is the numbers which matter. The more people you can reach with your adverts and the introduction of your products and services, the better the number of people converting to customers will be. Let us take an example where the conversion rate for your new business is 0.01%. This means that only one person out of the 100 who sees your ads buys from you. To increase the number of customers, you will need to raise your game in increasing the traffic. Get the number to 10, 000 so that 100 people buy from you. Do your best to increase your traffic further and your sales will appreciate with time.

ECONOMY:

The global economy is one of the biggest external factors that will, at some time, affect your business. Market fluctuations based on politics, terrorism attacks, wars and currency devaluation eventually trickle down to most commercial enterprises.

THESE ARE SOME IMPORTANT FACTORS THAT AFFECT OUR BUSINESS EXTERNALLY.